Rising to the last-mile challenge with a pedal-powered, more profitable, less polluting future

Rob King, co-founder and CEO, Zedify

The retail sector employs more than 4.9 million people in the UK, making it the country’s largest employer, data intelligence company Statista reports.

However, it is also one of the UK’s biggest polluters. The British Retail Consortium’s Climate Action Roadmap report states that the retail supply chain is one of the biggest contributors to UK greenhouse gas emissions.

And with the continued rise of retail-related deliveries and returns, carbon emissions from ecommerce logistics are forecast to hit around 25 million metric tonnes by 2030, Statista predicts.

Quite rightly then, the retail industry is under pressure from government, and from increasingly engaged consumers, to shift to more sustainable business practices.

Zedify’s research, created in partnership student discount portal Unidays, shows that more than 80% of Generation Z consumers – roughly those born between 1997 and 2012 – are prepared to pay more for sustainable goods and services, while brands rating highly on business consultant Kantar’s Sustainability BrandZ Index grew brand value by more than 30% year on year. This demonstrates that businesses taking sustainability seriously are outperforming those that are not.

Addressing the last mile

In the fashion industry, we know that a lot of brands and retailers are looking into the production of the products in their supply chain as a priority, but there is another area that is having a big impact on carbon emissions and it desperately needs to be addressed.

The transport sector is responsible for the largest portion of UK emissions, Department for Transport’s data shows. Unless it takes action, the UK is unlikely to meet its net zero targets. Fashion brands and retailers have a big part to play in changing this.

Zedify

The World Economic Forum predicts that demand for last-mile delivery – from warehouse to customer – will grow 78% by 2030, amid the continuing rise of online shopping.

As a result, there has been a big increase in van journeys, particularly in our cities. Government data shows that delivery vans now account for nearly 20% of all traffic, which is not only having a big impact on carbon emissions and air quality, but also on the customer experience and cost.

In fact, our latest research found that 50% of UK retail businesses admitted to losing customers because of a poor delivery experience, while the last mile now accounts for up to 53% of brands and retailers’ overall delivery costs.

All this means that the last mile has become a highly polluting, hugely expensive and very inefficient part of the retail supply chain, which is presenting a formidable challenge to carriers and retailers alike.

Electric vehicles have been touted as the answer but in urban centres, they only save 30% on carbon emissions compared with their diesel equivalents, our latest impact report shows. And they do little to alleviate congestion and spatial constraints – such as narrow roads and routes inaccessible to large delivery vehicles – inherent in urban delivery.

Enter cargo bikes

The path forward demands a radical reimagination of urban delivery – one that transcends the limitations of traditional models. Enter cargo bikes.

By replacing vans or trucks with cargo bikes – electric assisted pedal-operated cycles with storage space for packages – retail businesses could reduce their emissions by more than 90% compared with electric vehicles, our impact research report shows.

In the age of ecommerce, the last mile of delivery also represents the pinnacle of customer interaction, shaping perceptions and influencing brand loyalty. Cargo bikes offer a unique opportunity to elevate the customer experience, and provide a personalised delivery solution for shoppers.

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Unlike traditional delivery vehicles, cargo bikes can also navigate congested urban landscapes with ease, reaching customers swiftly and more efficiently. This enhanced agility translates into faster and more dynamic delivery times – as well as happier customers.

The economic reasons behind this shift are equally compelling. Traditional last-mile delivery methods entail significant operational costs, from fuel expenses to vehicle maintenance, and congestion and clean air charges in some cities. By contrast, cargo bikes are a cost-effective alternative, requiring minimal maintenance and operating costs.

The future

By addressing last-mile logistics, not only can retail businesses significantly reduce the environmental impact of their operations, they can improve customer relationships and drive profitability at the same time. It is why we are seeing so much interest from fashion brands and retailers across the UK seeking to transform their last-mile delivery methods.

But more than that, by uniting as an industry, we can drive meaningful change in the fight against climate change. By reimagining urban delivery, we can transform our cities into more sustainable spaces, where every delivery embodies our commitment to a greener future.

To find out more about Zedify and its cargo bike last-mile solutions, please contact hello@zedify.co.uk.